11.11.R - Lesson: National Economic Strategies & The Federal Reserve

Which of the following would happen if the Federal Reserve raised the reserve requirement? (choose all that apply)

It would reduce the amount of money banks could lead. It would lead to higher interest rates.

What government economic strategy reduces taxes on businesses who invest in increasing their productivity?

investment tax credits

Which of the following are examples of monetary policy strategies the government can use to encourage economic growth and lower unemployment? (choose all that apply)

lowering interest rates increasing the money supply

Which of the following are services provided by the Federal Reserve? (choose all that apply)

processing checks and electronic payments protecting consumers through regulation and education supplying banks with paper money and coins

How many regional Federal Reserve banks are there?

12

What committee is responsible for conducting monetary policy?

Federal Open Market Committee

________ policy refers to changes in federal taxation and spending that are designed to influence the economy.

Fiscal

Government policies designed to create economic growth by increasing aggregate demand are called ________________.

demand-side policies

The rate of interest that the central bank charges on its loans is called the ____________.

discount rate

Nearly all market economies experience long-term growth because of ___________.

economic incentives